Tax Loss – Handling Net Operating Loss for Small Businesses

Tax Loss - Handling Net Operating Loss for Small Businesses
As the old cliché goes, you’ve got to spend money to make money. Sometimes that means the small business you’re trying to get off the ground has losses for a year or two, including a tax loss on your tax return. Does that big red number on the bottom of your return do you any good, ...

What does it mean to materially participate?

What does it mean to materially participate?
(NOTE: This is a continuation of a case study looking into tax implications of starting up a small business. Click here to go back to the start) Considering how many items on a tax return are foreign concepts even after having prepared tax returns for a number of years, the IRS’s apparent need for scare quotes on ...

Deduction of Club Dues

Deduction of Club Dues
(NOTE: This is a continuation of a case study looking into tax implications of starting up a small business. This particular article deals with tax deductions for small business. Click here to go back to the start of the case study.) In a tax code that is rife with carve out and exceptions, club dues are one of ...

Taxation of Self Employment Retirement Plans

Taxation of Self Employment Retirement Plans
(NOTE: This is a continuation of a case study looking into tax implications of starting up a small business. This particular article deals with tax deductions for small business. Click here to go back to the start of the case study.) Before I begin, I want to note that I am a tax professional, not a retirement specialist. ...

Small Business Depreciation and Section 179 Expense

Small Business Depreciation and Section 179 Expense
(NOTE: This is a continuation of a case study looking into tax implications of starting up a small business. This particular article deals with tax deductions for small business. Click here to go back to the start of the case study.) Amy, in getting her business moving along, decided to pick up a new tablet to show off all ...

Business Expenses–Hollywood Got It Wrong

Business Expenses–Hollywood Got It Wrong
I enjoyed the movie Stranger Than Fiction—anything that manages to merge Tax Accounting and Writing together in a cohesive and entertaining way gets four stars in my book. Unfortunately, since “entertaining” and “taxes” are rarely synonymous, movies and books, including the one mentioned above, generally take the easy route and make stuff up to make ...